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C6. The payoffs of assets A. B and C in time periods 0 (current), 1 and 2 are as follows. _I_2l -1- ? 500 750

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C6. The payoffs of assets A. B and C in time periods 0 (current), 1 and 2 are as follows. _I\"_2l \"-1- ? 500 750 \" Asset -- -3oo zoo 250 n -500 soo son a) What is the fair price of asset A?[4 points] b) Suppose the price of A as traded in the market is 770. What is the trade to take advantage. be clear about ratio of securities and gains? [3 points] c) Suppose B trades at a bid price of 290 and an ask price of 310, instead of 300 above. Suppose C trades at 490 bid and 510 ask. Suppose A is bid at 755 and offered at 785. How does this change the economics of the trade in (b) above

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